Lavendon, Europe’s leading powered access hire company, saw its UK revenues increase 5% in 2010 to £112.1m (2009: £106.6m). While there was no rise in rental revenues, sales of new and used equipment doubled.
UK operating profit was down nearly 9% to £11.3m (2009: £12.4m), indicating an erosion in margin from 11.7% to 10.1%.
Lavendon trades in the UK primarily through its Nationwide and Panther subsidiaries. The company said that the UK's rental revenue performance was hit by the severe weather during the first quarter of 2010 and the flow-through effect of pricing pressures seen in 2009. Rental demand increased progressively through the year, and demand from non-construction customers continued to out-perform the construction sector. In the second half of the year, though, construction revenues did start to see year-on-year growth.
For the group as a whole, which has rental operations in Germany, Belgium, France, Spain and the Middle East, total revenues were broadly steady at £225.4m (2009: £226.9m). Aside from the UK, France was the only other market to grow.
Lavendon recently rejected two unsolicited takeover bids, from TVH Services and Ashtead, saying that they undervalued the group. It is now planning measures to ward off future predators.
Chief executive Kevin Appleton said: "In the last few weeks, we conducted operational and business plan reviews with some external support, and these have confirmed opportunities for the group to improve efficiency and drive top-line growth going forward. Following these high-level reviews, we are working to produce detailed implementation plans. The board is confident of the group's ability to deliver increased shareholder value through the cycle."
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